South Africa
By: The ReDress Consultancy
A 2005 report advised the government not to grant blanket exemptions from bargaining council levies.
Bargaining council report to President flawed
In a huge blow for owner-managed businesses, a fundamentally flawed report advises the government not to grant blanket exemption to owner-managed businesses from crippling bargaining council levies and enforced corporate wage packages.
The report entitled "The Conditions of employment and small business: coverage, compliance and exemptions" forms part of one of just seven areas of research commissioned by President Thabo Mbeki's task team to look into possible exemptions for business owners in the labour and tax arena. (1)
Bargaining councils are often accused by owner-managed businesses as being unrepresentative, and the exemption procedure as unfair, inconsistent and unpredictable.
Owner-managed firms argue that the system of extending bargaining council agreements to non-party members is unconstitutional. The compilers of the report, who however did not consult a single non-party owner-managed business, claim in their report that, in most cases, bargaining councils do represent smaller companies and that some 70% of exemptions between 2000 and 2004 were granted to small businesses, most of these to non-party members.
The report fails to take into account that large, established businesses use the bargaining council system to keep their industries clear of competition rising from the ranks of smaller businesses by selectively granting exemptions. This would leave exemptions in the hands of councils, who many smaller firms mistrust, as they argue they represent only the interests of bigger businesses.
The report pointed out that 24 of the currently-registered 48 bargaining councils, fail to represent at minimum 50% of employers in their sector. Of these, 11 councils represent less than 30% of employers in their sector.
While another article (2), written in 2004, stated that there was widespread under-representation of small businesses on councils. . Large businesses benefit by making labour so expensive in their industry that they kill competition from smaller emerging businesses effectively forming large cartels with the unions.
For more related articles click here.
Reference:
1. Business Owner, 14 Dec 2005. By: Stephen Timm
2. BusinessOwner , 5 May 2004. By B. Terblacnhe
While another article (2), written in 2004, stated that there was widespread under-representation of small businesses on councils. . Large businesses benefit by making labour so expensive in their industry that they kill competition from smaller emerging businesses effectively forming large cartels with the unions.
For more related articles click here.
Reference:
1. Business Owner, 14 Dec 2005. By: Stephen Timm
2. BusinessOwner , 5 May 2004. By B. Terblacnhe
1 comments:
very interesting report & look where it has gotten us, even big business cannot afford the labour cost anymore.
So much for improving the industry, so much for short sighted policies and politics and to the individuals who championed the cause for self-destruction, in the name of the greater good.
Never before have so few spineless individuals caused so much damage to so many.
The reality as it stands at the moment is that it may be perpetuated infinitum - lets hope there are people with spines who can make the right decisions that ensure an industry survives, despite the odds they face.
We have allowed ourselves to be dictated to by jellyfish who are afraid to, or cannot, stand up for fear of being blown away by the prevailing breeze.
Post a Comment